Colorado vs Connecticut
Property Tax Comparison: Colorado vs. Connecticut
Intro
Both Colorado and Connecticut impose property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Colorado’s effective property tax rate is substantially lower than Connecticut’s. The difference in rates translates into markedly different annual tax bills for comparable home values, even though the two states have similar median household incomes.
Side‑by‑Side Metrics
| Metric | Colorado | Connecticut |
|---|---|---|
| Effective property tax rate | 0.49 % | 1.92 % |
| Median home value | $502,200 | $343,200 |
| Median annual property tax | $2,448 | $6,575 |
| Property tax on a $250,000 home | $1,219 | $4,789 |
| Property tax on a $500,000 home | $2,438 | $9,579 |
| Median household income | $92,470 | $93,760 |
| Reference | Colorado property tax | Connecticut property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
- Winner (lower tax rate): Colorado
- Tax‑rate difference: 1.43 percentage points, which is a 74.55 % lower effective rate than Connecticut’s.
- Annual tax difference on a $250,000 home: $3,570 (Colorado $1,219 vs. Connecticut $4,789).
- Annual tax difference on a $500,000 home: $7,141 (Colorado $2,438 vs. Connecticut $9,579).
Why Colorado wins: The effective property tax rate of 0.49 % is roughly one‑quarter of Connecticut’s 1.92 %. Consequently, Colorado homeowners pay less in absolute dollars for the same property value, despite Colorado’s higher median home price.
Who Benefits Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current homeowners | Understanding the ongoing cost of owning a home in each state helps with budgeting and long‑term financial planning. |
| Prospective homebuyers | Lower effective rates in Colorado may make it a more affordable option for buyers who prioritize property‑tax savings. |
| Retirees | Fixed‑income retirees often consider property taxes when choosing a residence; Colorado’s lower rates could reduce annual cash‑flow requirements. |
| Real‑estate investors | Tax liability directly affects net operating income; Colorado’s lower rates improve cash‑flow projections for rental properties. |
| Policy analysts | The stark contrast in effective rates provides a clear case study for examining how state tax structures impact household costs. |
All groups should also weigh other factors such as overall cost of living, state income taxes, and local service levels when evaluating the total tax burden.
Summary
Based on the most recent ACS estimates, Colorado’s effective property tax rate of 0.49 % is considerably lower than Connecticut’s 1.92 %. This results in annual property‑tax savings of $3,570‑$7,141 for homes valued at $250,000‑$500,000. The data suggest that Colorado offers a more tax‑advantageous environment for homeowners, retirees, and investors who prioritize lower property‑tax expenses.
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Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.